Trading of Crypto Securities is About to Become Possible
Crypto startup Circle is trying to register as a federally accredited bank in the U.S.
In a report published Wednesday, Bloomberg announced that besides the banking license, Circle – a crypto wallet and investment platform, and an OTC trading assistance – would also try to register with the SEC as a brokerage platform.
If this move from the Goldman Sachs-backed company will be successful, it would allow trading crypto securities in the U.S. and would also help to bypass the complexities of registering as a crypto firm with governors in all 50 states.
Following early discussions with the SEC and the Office of the Comptroller of the Currency over the registration, Circles said it would likely seek SEC regulation before proceeding to ask for the banking license.
He continued that the firm would also give regulators a “great guinea pig” in investigations of regulatory frameworks as Wall Street giants approaching the cryptocurrency adoption.
The sharp move would appear to align well with one of the Circle’s important goal, to ultimately offer a wide array of digital assets.
Further backing that aim, Circle got the Poloniex in February to create an exchange that will finally offer a host of cryptocurrencies. Sources proposed at the time that the firm invested roughly $400 million in closing the deal.
Investors also recognize the potential in the firm’s widening reach, with Circle closing a $110 million Series E fundraising series in May. Commanded by China-based mining firm Bitmain, among the series participants are also Accel, Breyer, Blockchain Capital, IDG, Digital Currency Group, Pantera, General Catalyst, and Tusk Ventures.
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